It prefers a good lifestyle to a simple one, an HT-CNN IBN survey shows, reports Namita Bhandare.
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The Indian middle class is seduced by la dolce vita, found an HT-CNN IBN survey. Discarding the spartan lifestyle of their parents, an increasing number of the Indian middle class is plumping for a new attitude to spending.
Regardless of whether it’s based in towns, cities, or rural areas, over half of all middle-class respondents said they would rather have a good lifestyle than a more simple and austere one.
Travel and eating out are two areas where the new consumerists are looking to spend their money. Among the higher middle class, 63 percent had gone on a vacation at least once in the past two years; 14 percent said they ate out at least once a week. The bug seems to have caught the fancy of the lower middle class too: 51 percent had taken a holiday in the last two years and 8 percent said they ate out at least once a week.
An overwhelming number of urban higher middle-class individuals polled owned mobile phones (87 percent), washing machines (72 percent), and personal computers (55 percent).
“The horizon has certainly widened,” says Arjun Puri who runs a catering service called XO. “People are traveling, are aware, and don’t mind spending on exotic cuisine ranging from Moroccan to Lebanese.” Puri who began his business by catering to corporates now focuses entirely on private parties says typically his customers represent double-income households.
Last year, domestic tourism alone saw a 30 percent increase, points out Jyoti Mayal of New Airways travel agency. “People are ready to pack and leave even for a two-day break at a moment’s notice,” she says.
The National Council for Applied Economic Research estimates that there are 56 million people in households earning between $4,400 (Rs 2.98 lakh) and $21,800 (Rs 9.81 lakh) a year, which it defines as ‘middle class’.
Perhaps less encouraging is the middle-class youth’s desire to seek la dolce vita in what it sees as greener pastures abroad. Sixty-eight percent of respondents up to the age of 25 said they wanted to live abroad. The number goes down only slightly among the older age group (26-35 years) with 60 percent looking for that elusive Green Card.